CABINET OFFICE

Civil Defence

Douglas Alexander: The aggregate amount of civil defence grants to be made for the financial year 2003–04 is £19,038,000 of which £100,000 will be retained as discretionary grant for special projects and special events deemed of benefit to the wider emergency planning community in England and Wales.
	The remaining £18,938,000 will be allocated to individual authorities as set out in the table below.
	The grants have been allocated in the same way as last year, but with each authority receiving an equal share of the additional £70,000 available. Every authority thereby receives a slight increase in grant of £386.
	
		
			 Local Authority Grant Allocation 2003-04 (£) 
		
		
			 Anglesey/Ynys Mon 61,342 
			 Barking and Dagenham 75,969 
			 Barnet 80,694 
			 Barnsley 76,076 
			 Bath and North East Somerset 90,011 
			 Bedfordshire 136,511 
			 Bexley 78,758 
			 Birmingham 187,380 
			 Blackburn with Darwen 70,658 
			 Blackpool 66,662 
			 Blaenau Gwent 63,083 
			 Bolton 82,674 
			 Bournemouth 70,122 
			 Bracknell Forest 63,899 
			 Bradford 125,756 
			 Brent 86,592 
			 Bridgend 68,323 
			 Brighton and Hove 81,172 
			 Bristol 98,486 
			 Bromley 84,980 
			 Buckinghamshire 200,557 
			 Bury 71,195 
			 Caerphilly 73,088 
			 Calderdale 74,574 
			 Cambridgeshire 163,057 
			 Camden 84,175 
			 Cardiff 87,322 
			 Carmarthenshire 73,858 
			 Ceredigion 64,143 
			 Cheshire 189,969 
			 Conwy 64,811 
			 Cornwall 189,279 
			 Corporation of London 60,145 
			 Coventry 77,776 
			 Croydon 90,666 
			 Cumbria 216,116 
			 Darlington 63,899 
			 Denbighshire 71,434 
			 Derby 76,503 
			 Derbyshire 220,459 
			 Devon 217,294 
			 Doncaster 85,516 
			 Dorset 175,886 
			 Dudley 82,908 
			 Durham 213,601 
			 Ealing 90,344 
			 East Riding of Yorkshire 72,166 
			 East Sussex 208,288 
			 Enfield 88,198 
			 Essex 315,112 
			 Flintshire 77,741 
			 Gatehshead 79,140 
			 Gloucestershire 189,960 
			 Greater Manchester FCDA 64,060 
			 Greenwich 86,482 
			 Gwynedd 67,698 
			 Hackney 88,145 
			 Halton 68,137 
			 Hammersmith and Fulham 76,719 
			 Hampshire 298,996 
			 Haringey 85,624 
			 Harrow 65,726 
			 Hartlepool 64,650 
			 Havering 77,685 
			 Herefordshire 70,229 
			 Hertfordshire 310,886 
			 Hillingdon 81,386 
			 Hounslow 80,742 
			 Hull (Kingston upon Hull) 72,265 
			 Isle of Wight 72,230 
			 Isles of Scilly 53,708 
			 Islington 83,424 
			 Kensington and Chelsea 74,788 
			 Kent 339,586 
			 Kingston upon Thames 67,654 
			 Kirklees 95,431 
			 Knowsley 74,359 
			 Lambeth 87,789 
			 Lancashire 315,233 
			 Leeds 172,987 
			 Leicester 88,896 
			 Leicestershire 192,957 
			 Lewisham 83,978 
			 Lincolnshire 212,793 
			 Liverpool 97,648 
			 London FEPA 151,825 
			 Luton 59,894 
			 Manchester 147,667 
			 Medway 81,547 
			 Merseyside FCDA 73,332 
			 Merthyr Tydfil 60,998 
			 Merton 72,053 
			 Middlesbrough 71,355 
			 Milton Keynes 81,404 
			 Monmouthshire 62,154 
			 Neath Port Talbot 70,259 
			 Newcastle Upon Tyne 102,823 
			 Newham 88,226 
			 Newport 68,616 
			 Norfolk 276,813 
			 North East Lincolnshire 71,624 
			 North Lincolnshire 69,532 
			 North Somerset 71,248 
			 North Tyneside 74,091 
			 North Yorkshire 244,523 
			 Northamptonshire 239,260 
			 Northumberland 188,122 
			 Nottingham 86,321 
			 Nottinghamshire 210,927 
			 Oldham 79,294 
			 Oxfordshire 202,459 
			 Pembrokeshire 66,735 
			 Peterborough 72,214 
			 Plymouth 81,708 
			 Poole 66,635 
			 Portsmouth 74,467 
			 Powys 85,886 
			 Reading 67,386 
			 Redbridge 82,566 
			 Redcar and Cleveland 69,693 
			 Rhondda Cynon Taff 82,319 
			 Richmond upon Thames 69,424 
			 Rochdale 77,310 
			 Rotherham 81,654 
			 Rutland 56,443 
			 Salford 72,386 
			 Sandwell 88,413 
			 Sefton 84,015 
			 Sheffield 96,386 
			 Shropshire 153,834 
			 Slough 68,566 
			 Solihull 73,716 
			 Somerset 164,359 
			 South Gloucestershire 76,183 
			 South Tyneside 71,516 
			 South Yorkshire FCDA 84,356 
			 Southampton 77,470 
			 Southend 71,966 
			 Southwark 77,343 
			 St Helens 73,333 
			 Staffordshire 226,842 
			 Stockport 79,992 
			 Stockton-on-Tees 73,877 
			 Stoke-on-Trent 74,413 
			 Suffolk 221,786 
			 Sunderland 101,107 
			 Surrey 297,388 
			 Sutton 73,126 
			 Swansea 78,933 
			 Swindon 71,355 
			 Tameside 77,310 
			 Telford and Wrekin 72,385 
			 Thurrock 68,666 
			 Torbay 67,440 
			 Torfaen 64,876 
			 Tower Hamlets 93,509 
			 Trafford 75,754 
			 Tyne and Wear FCDA 34,892 
			 Vale of Glamorgan 72,385 
			 Wakefield 86,667 
			 Walsall 83,639 
			 Waltham Forest 83,532 
			 Wandsworth 79,155 
			 Warrington 72,804 
			 Warwickshire 181,722 
			 West Berkshire 67,815 
			 West Midlands FCDA 60,386 
			 West Sussex 225,386 
			 West Yorkshire FCDA 61,593 
			 Westminster 86,804 
			 Wigan 84,497 
			 Wiltshire 194,786 
			 Windsor and Maidenhead 66,796 
			 Wirral 89,861 
			 Wokingham 66,525 
			 Wolverhampton 82,030 
			 Worcestershire 186,835 
			 Wrexham 72,926 
			 York 72,220

DEFENCE

HMS Nottingham

Adam Ingram: When the destroyer HMS NOTTINGHAM grounded in Australian waters on 7 July 2002 she sustained severe damage and flooding in the forward part of the ship. She is now on passage to the UK on a heavy lift ship and is expected to arrive in United Kingdom waters on 7 December. She will then be unloaded and towed into HM Naval Base at Portsmouth where a contract has been placed for her repair with Fleet Support Limited. The repair work—which will cost around £26M, including all materials supplied by the Department—is expected to last up to 18 months. HMS NOTTINGHAM is expected to return to operational service in November 2004.
	HMS NOTTINGHAM is a highly capable Type 42 destroyer designed to provide area air defence either independently or as an integral component of larger joint or coalition maritime task groups. Her key weapons, sensors and Command System were significantly upgraded during an extensive refit in 1999–2000. These improvements will enable the ship to keep pace with the increasing demands of maritime air defence during the next 10 years and will aid interoperability with key allies, in particular the USA. HMS NOTTINGHAM's contribution will be crucial to bridging the air defence gap during the drawdown in Sea Harrier air defence aircraft beginning in 2005 and the introduction of the Type 45 Destroyer from 2007.
	To ease the short-term programming gap in the fleet created by HMS NOTTINGHAM's unavailability, HMS GLASGOW, an older and less capable Type 42 is being regenerated from a planned state of lower readiness. An alternative solution which would have given HMS GLASGOW a similar capability upgrade to that received by HMS NOTTINGHAM in 1999 was considered, but the repair of HMS NOTTINGHAM was deemed to provide best value for money.

Service Pensions (Taxation)

Lewis Moonie: On 25 April 2002 Official Report, columns 426—27W, I informed the House that the problem of mistaken taxation of some Service invalidity pensions was more extensive than previously understood. I reported that we had set up an internal review, independent of the staffs involved, to establish the extent of the taxation errors and expose any related problems. This review is now complete.
	The review has established that the taxation problem is more extensive than I indicated in April. It is now clear that some RAF pensions are affected, and that the RN pensions affected are not limited to the period 1973–99. In addition, the review has found that further work is needed on Army pensions; this is required both to re-examine more thoroughly certain cases adjudged when first reviewed as correctly taxed, and to examine for the first time some other cases previously not thought to be at risk.
	The findings of the review mean that the number of files needing examination has proved considerably larger than I stated previously. I now expect it will not be possible to complete a comprehensive check for all three Services before next summer. I regret that this work cannot be done faster, but it is vital that it be done accurately, by suitably cleared staff who are also familiar with the relevant documents. The pace of the work is also affected by the lack of comprehensive computerised information distinguishing invalidity pensions from others. This has made it necessary to handle many tens of thousands of files which are not at risk in order to identify those that are. This difficulty continues to affect progress.
	We are very much aware of the importance of giving as much priority as possible to examining the cases of our oldest pensioners. Although over 70 per cent. of errors identified so far affect younger pensioners, discharged in or after 1990, we anticipate that errors still to be found will include some affecting the oldest age-group. I much regret that in several of the cases recently re-examined a pensioner, previously misadvised that his pension was correctly taxed, has died before an error was recognised. In such cases the tax refund is to be paid, with due apology, to the pensioner's widow or estate.
	A further problem brought to light by the review is that some of the pensions taxed in error were also affected by an underpayment of Armed Forces Pension Scheme benefits. Over 350 pensioners have so far been identified in this category, most of whom were discharged in the 1990s. The average underpayment in these cases was around £4,500. The cost to date of rectifying tax errors has been some £5M, which happens also to be an average of some £4,500 per pensioner.
	The review includes a full analysis of the causes of errors and the necessary remedial action; the latter is already in hand. The procedures used in the conduct of the review have been validated by the National Audit Office. The NAO's letter of validation and the report of the review have been placed in the library of the House.

Army Attributable Pensions

Lewis Moonie: ]
	Since my statement to the House on 23 January 2002, Official Report, columns 891–902, the Armed Forces Personnel Administration Agency has been conducting a review to establish more clearly the exact extent of the problem with the mistaken taxation of service invaliding and attributable pensions. This work is not complete, but has revealed that some Royal Navy invaliding and attributable pensions awarded between 1973 and 1999 have also been mistakenly taxed. We will be reviewing all the case files of those who might have been affected and arranging for refunds to be made as appropriate. This will be done as quickly as possible but is expected to take some months given the need to review several thousand pension files. We will also be providing appropriate national publicity to allow those who think they might have a claim to apply for a tax refund.
	Our research has not so far revealed any cases where Royal Air Force pensions were wrongly taxed and there is evidence that the RAF has had in place checks which would have uncovered cases where attributable pensions should have been exempt from tax. However, we will include the RAF in our continuing work to ensure that no error is left unidentified.
	Our further work to date has confirmed that the problem was more extensive than originally understood but has also shown the complexity of the issues involved as, over time, changes have been made to the organisations responsible for administering the pensions and to the rules governing the schemes. We have therefore concluded that we should set up an internal review, completely independent of the staffs involved, to establish the precise extent of the current problems and to expose any other problems that may exist. This independent review will look across all three sevices, be launched as soon as possible and is likely to take a number of months to complete. The review team will be headed up by a senior civil servant and consist of staff drawn from the Defence Internal Audit. In order to provide external confidence, the NAO will be invited to validate the procedures. I will report the findings to the House.

TRANSPORT

Car Sharing/Car Clubs

John Spellar: I have written to Sir Trevor Chinn, the chairman of the Motorists' Forum, welcoming their report on car sharing and car clubs and enclosing the Government's response. The response outlines further support that the Government will give to work in this field, in particular:
	continued funding for an advisory service on car clubs and formal car sharing schemes;
	further research to monitor car clubs in circumstances that offer the most potential for success, for example where they may help to achieve higher densities in new residential developments than might otherwise be the case; and
	further research on formal car sharing schemes in institutional settings, such as the workplace, with a view to publishing best practice guidance later next year.
	Copies of my letter and the Government response have been placed in the Libraries of the House.

TREASURY

Public Service Pensions

Paul Boateng: Legislation governing public service pensions requires public service pensions to be increased annually by the same percentage as State earnings related pensions (additional pensions). My right hon. Friend the Secretary of State for Work and Pensions announced on 19 November 2002, Official Report, column 16WS that benefits such as additional pensions will be increased by 1.7 per cent., in line with the annual increase in the Retail Prices Index up to September 2002. Public service pensions will therefore be increased by 1.7 per cent. from 7 April 2003, except those which have been in payment for less than a year, which will receive a pro-rata increase.

HOME DEPARTMENT

Drug Strategy

David Blunkett: All controlled drugs are harmful and will remain illegal. Drug misuse is the biggest challenge society faces. It damages the health and life chances of individuals. It undermines family life, turns law-abiding citizens into thieves and erodes communities. It is essential that we educate the young about the dangers of drugs, prevent drug misuse, tackle the dealers to reduce the prevalence of drugs on the streets and reduce the harm drugs cause.
	To address this, the Government has published its Updated Drug Strategy developed to take account of new evidence of what works and focus on delivery.
	In 1998, the first cross-cutting strategy was introduced to tackle drug trafficking, supply and misuse. This update builds on the foundations laid and the lessons learnt. We must concentrate on the most dangerous drugs, the most damaged communities and the individuals whose addiction and chaotic lifestyles are the most harmful, both to themselves and others. Education, prevention, enforcement, treatment and harm minimisation are our most powerful tools.
	Setting out a range of policies and interventions, the Updated Drug Strategy provides:
	a tougher focus on Class A drugs;
	a stronger focus on education, enforcement and treatment to prevent and tackle problematic drug use;
	more resources—direct annual expenditure for tackling drugs will rise from £1,026 million in this financial year to £1,244 million in the next financial year, £1,344 million in the year starting April 2004 to a total annual spend of nearly £1.5 billion in the year starting April 2005—an increase of 44 per cent;
	a major new education campaign to be launched in Spring 2003 to drive home the risks of drug misuse. More support for parents, carers and families so they can easily access advice, help, counselling and mutual support;
	more help for the young people most at risk of developing drug problems through increased outreach and community treatment and an extension of drug testing and referrals to treatment and care via the youth justice system so that by 2006, we are able to support 40,000–50,000 vulnerable young people a year;
	strengthened enforcement- including new cross-regional police teams to tackle middle markets and targeted policing to crack down on crack;
	a major expansion of services to refer people into treatment via the criminal justice system. We will use every opportunity from arrest, to court and sentence to identify drug-misusing offenders and engage them in treatment. Starting from next year in the highest crime areas with the worst drug problems we will roll out a comprehensive end to end approach. This will ensure that every drug addicted offender is identified through drug testing at the point of arrest and charge and given the choice at their bail hearing of entering treatment rather than entering custody. All this is backed up by extra resources for arrest referral, drug treatment and testing orders, treatment in prison and Youth Offending Institutes and for post-release treatment and support for those leaving custody;
	an expansion of treatment services to ensure access is available when needed and is tailored to individual need, including residential treatment. Improved treatment for crack and cocaine users and heroin prescribing properly supervised for all those who would clinically benefit from it. By 2008, we will have developed the capacity to treat 200,000 problematic drug users each year. Funding for treatment services, including prisons, will increase by £45 million in the next financial year, £54 million for the year starting from April 2004 and £115 million from April 2005. This will be boosted by treatment funding associated with Drug Treatment and Testing Orders of nearly £10 million in the next financial year, £12 million in the year starting from April 2004 and £16 million from April 2005—bringing the total direct annual spend on treatment up to £589 million by 2005;
	new aftercare and throughcare services to help those leaving prison or treatment remain free from drugs;
	strengthened capacity to deliver first in the areas with the greatest problems and improved services in those areas most affected by crack use; and
	revised targets which are challenging but achievable.
	Copies of "Updated Drug Strategy 2002 " have been placed in the Library. It is also available on the web at http://www.drugs.gov.uk.

CULTURE MEDIA AND SPORT

New Radio Ownership Scheme

Tessa Jowell: I have today deposited a copy of the draft Order and accompanying Explanatory Memorandum in the Libraries of both Houses. Copies have also been sent to the Radio Authority, the Independent Television Commission (ITC) and the Commercial Radio Companies Association. We welcome comments from anyone with an interest.

DEPUTY PRIME MINISTER

Fire Service

John Prescott: Today I have placed copies of a report produced by the COBR–Joint Assessment Cell report, entitled XIndustrial Action by the Fire Brigades Union. Contingency arrangements during the 8-day strike, 22–30 November 2002" in the Vote Office and Libraries of the House.

PRIME MINISTER

Chief Surveillance Commissioner

Tony Blair: I am today laying before Parliament the annual report for 2001–2002 of the Chief Surveillance Commissioner on the discharge of his functions under Part III of the Police Act 1997 and Part II of the Regulation of Investigatory Powers Act 2000. As required, under section 107(3A) of the Police Act 1997, after consultation with the Chief Surveillance Commissioner I can confirm that no matter has been excluded from the enclosed report.
	I am most grateful to Sir Andrew Leggatt and his colleagues for the work which has gone into preparing it.